IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

How big is the impact of infrastructure on trade? Evidence from meta-analysis

  • Celbis, Mehmet Güney

    ()

    (UNU-MERIT / MGSoG, Maastricht University)

  • Nijkamp, Peter

    ()

    (Vrije Universiteit Amsterdam)

  • Poot, Jacques

    ()

    (University of Waikato)

Low levels of infrastructure quality and quantity can create trade impediments through increased transport costs. Since the late 1990s an increasing number of trade studies have taken infrastructure into account. The purpose of the present paper is to quantify the importance of infrastructure for trade by means of meta-analysis and meta-regression techniques that synthesize various studies. The type of infrastructure that we focus on is mainly public infrastructure in transportation and communication. We examine the impact of infrastructure on trade by means of estimates obtained from 36 primary studies that yielded 542 infrastructure elasticities of trade. We explicitly take into account that infrastructure can be measured in various ways and that its impact depends on the location of the infrastructure. We estimate several meta-regression models that control for observed heterogeneity in terms of variation across different methodologies, infrastructure types, geographical areas and their economic features, model specifications, and publication characteristics. Additionally, random effects account for between-study unspecified heterogeneity, while publication bias is explicitly addressed by means of the Hedges model. After controlling for all these issues we find that a 1 per cent increase in own infrastructure increases exports by about 0.6 per cent and imports by about 0.3 per cent. Such elasticities are generally larger for developing countries, land infrastructure, IV or panel data estimation, and macro-level analyses. They also depend on the inclusion or exclusion of various common covariates in trade regressions

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.merit.unu.edu/publications/wppdf/2013/wp2013-032.pdf
Download Restriction: no

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 032.

as
in new window

Length:
Date of creation: 2013
Date of revision:
Handle: RePEc:unm:unumer:2013032
Contact details of provider: Postal:
P.O. Box 616, 6200 MD Maastricht

Phone: (31) (0)43 3883875
Fax: (31) (0)43 3216518
Web page: http://www.merit.unu.edu/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Stanley, T D & Jarrell, Stephen B, 1989. " Meta-Regression Analysis: A Quantitative Method of Literature Survey s," Journal of Economic Surveys, Wiley Blackwell, vol. 3(2), pages 161-70.
  2. Christopher GRIGORIOU & Céline CARRERE, 2008. "Landlockedness, Infrastructure and Trade:New Estimates for Central Asian Countries," Working Papers 200801, CERDI.
  3. Patrice Laroche & Hristos Doucouliagos, 2009. "Unions and Profits: A meta-regression Analysis," Post-Print hal-00648569, HAL.
  4. Bouet, Antoine & Mishra, Santosh & Roy, Devesh, 2008. "Does Africa trade less than it should, and if so, why?: The role of market access and domestic factors," IFPRI discussion papers 770, International Food Policy Research Institute (IFPRI).
  5. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," NBER Working Papers 10480, National Bureau of Economic Research, Inc.
  6. Roberto Longo & Khalid Sekkat, 2004. "Economic obstacles to expanding intra-African trade," ULB Institutional Repository 2013/7358, ULB -- Universite Libre de Bruxelles.
  7. Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann, 2003. "Augmented Gravity Model: An Empirical Application to Mercosur-European Union Trade Flows," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 291-316, November.
  8. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
  9. Nijkamp, Peter & Poot, Jacques, 2004. "Meta-analysis of the effect of fiscal policies on long-run growth," European Journal of Political Economy, Elsevier, vol. 20(1), pages 91-124, March.
  10. Michael T. Owyang & Valerie A. Ramey & Sarah Zubairy, 2013. "Are Government Spending Multipliers Greater during Periods of Slack? Evidence from Twentieth-Century Historical Data," American Economic Review, American Economic Association, vol. 103(3), pages 129-34, May.
  11. Portugal-Perez, Alberto & Wilson, John S., 2012. "Export Performance and Trade Facilitation Reform: Hard and Soft Infrastructure," World Development, Elsevier, vol. 40(7), pages 1295-1307.
  12. Casas, F R, 1983. "International Trade with Produced Transport Services," Oxford Economic Papers, Oxford University Press, vol. 35(1), pages 89-109, March.
  13. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  14. T. D. Stanley, 2001. "Wheat from Chaff: Meta-analysis as Quantitative Literature Review," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 131-150, Summer.
  15. Ozgen, Ceren & Nijkamp, Peter & Poot, Jacques, 2009. "The Effect of Migration on Income Growth and Convergence: Meta-Analytic Evidence," IZA Discussion Papers 4522, Institute for the Study of Labor (IZA).
  16. Genc, Murat & Gheasi, Masood & Nijkamp, Peter & Poot, Jacques, 2011. "The Impact of Immigration on International Trade: A Meta-Analysis," IZA Discussion Papers 6145, Institute for the Study of Labor (IZA).
  17. Ibrahim Elbadawi & Taye Mengistae & Albert Zeufack, 2006. "Market access, supplier access, and Africa's manufactured exports: A firm level analysis," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(4), pages 493-523.
  18. T.D. Stanley & Hristos Doucouliagos & Margaret Giles & Jost H. Heckemeyer & Robert J. Johnston & Patrice Laroche & Jon P. Nelson & Martin Paldam & Jacques Poot & Geoff Pugh & Randall S. Rosenberger & , 2013. "Meta-Analysis Of Economics Research Reporting Guidelines," Journal of Economic Surveys, Wiley Blackwell, vol. 27(2), pages 390-394, 04.
  19. Tomasz Iwanow & Colin Kirkpatrick, 2007. "Trade facilitation, regulatory quality and export performance," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(6), pages 735-753.
  20. Carrere, Celine, 2006. "Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model," European Economic Review, Elsevier, vol. 50(2), pages 223-247, February.
  21. Ashenfelter, Orley & Harmon, Colm & Oosterbeek, Hessel, 1999. "A review of estimates of the schooling/earnings relationship, with tests for publication bias," Labour Economics, Elsevier, vol. 6(4), pages 453-470, November.
  22. T.D. Stanley & Chris Doucouliagous & Stephen B. Jarrell, 2006. "Meta-Regression Analysis as the Socio-Economics of Economic Research," Economics Series 2006_21, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  23. Souleymane Coulibaly & Lionel Fontagné, 2006. "South-South Trade: Geography Matters," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00270506, HAL.
  24. Nijkamp, Peter, 1986. "Infrastructure and Regional Development: A Multidimensional Policy Analysis," Empirical Economics, Springer, vol. 11(1), pages 1-21.
  25. T. D. Stanley, 2008. "Meta-Regression Methods for Detecting and Estimating Empirical Effects in the Presence of Publication Selection," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(1), pages 103-127, 02.
  26. Giuseppe Nicoletti & Steve Golub & Dana Hajkova & Daniel Mirza & Kwang-Yeol Yoo, 2003. "Policies and International Integration: Influences on Trade and Foreign Direct Investment," OECD Economics Department Working Papers 359, OECD Publishing.
  27. Peter Nijkamp & Jacques Poot, 2002. "The Last Word on the Wage Curve?," Tinbergen Institute Discussion Papers 02-029/3, Tinbergen Institute, revised 13 Mar 2003.
  28. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
  29. Geraci, Vincent J & Prewo, Wilfried, 1977. "Bilateral Trade Flows and Transport Costs," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 67-74, February.
  30. Persson, Maria, 2008. "Trade Facilitation and the EU-ACP Economic Partnership Agreements," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 518-546.
  31. Yanrui Wu, 2007. "Export performance in China's regional economies," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1283-1293.
  32. repec:inr:wpaper:167812 is not listed on IDEAS
  33. Laura Márquez-Ramos & Inmaculada Martínez-Zarzoso, 2005. "Does Heterogeneity Matter In The Context Of The Gravity Model?," Economics Bulletin, AccessEcon, vol. 6(17), pages 1-7.
  34. Maria Cipollina & Luca Salvatici, 2010. "Reciprocal Trade Agreements in Gravity Models: A Meta-Analysis," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 63-80, 02.
  35. Jansen, Marion & Nordås, Hildegunn Kyvik, 2004. "Institutions, Trade Policy and Trade Flows," CEPR Discussion Papers 4418, C.E.P.R. Discussion Papers.
  36. Jaime L. Peters & Alex J. Sutton & David R. Jones & Keith R. Abrams & Lesley Rushton & Santiago G. Moreno, 2010. "Assessing publication bias in meta-analyses in the presence of between-study heterogeneity," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(3), pages 575-591.
  37. Mariana Vijil & Laurent Wagner, 2012. "Does Aid for Trade Enhance Export Performance? Investigating the Infrastructure Channel," The World Economy, Wiley Blackwell, vol. 35(7), pages 838-868, 07.
  38. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-81, August.
  39. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2008. "Agglomeration Externalities, Innovation and Regional Growth: Theoretical Perspectives and Meta-Analysis," Working Papers in Economics 08/01, University of Waikato, Department of Economics.
  40. T. D. Stanley, 2005. "Beyond Publication Bias," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 309-345, 07.
  41. Gaël Raballand, 2003. "Determinants of the Negative Impact of Being Landlocked on Trade: An Empirical Investigation Through the Central Asian Case," Comparative Economic Studies, Palgrave Macmillan, vol. 45(4), pages 520-536, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:unm:unumer:2013032. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ad Notten)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.